Corpus ID: 152941524

Comparative Advantage: From an Individual to the Economy

@inproceedings{Rajsic2010ComparativeAF,
  title={Comparative Advantage: From an Individual to the Economy},
  author={Predrag Rajsic},
  year={2010}
}
This paper identifies an internal inconsistency in the Heckscher-Ohlin (H-O) models of international exchange. The inconsistency stems from assuming homogeneity of inputs within a population. This assumption annihilates individual comparative advantage, benefits from exchange and, consequently, existence of autarky prices. In order to remove this inconsistency, I build a two-good multi-individual model by using the microeconomic concept of individual comparative advantage stemming from… Expand

References

SHOWING 1-10 OF 49 REFERENCES
What Does the Heckscher-Ohlin Model Contribute to International Trade Theory? A Critical Assessment
  • 21
  • Highly Influential
General Equilibrium and the Heckscher-Ohlin Theory of Trade: The Multi-Country Case
  • 16
Dynamic Adjustment in the Heckscher-Ohlin-Samuelson Model
  • M. Mussa
  • Economics
  • Journal of Political Economy
  • 1978
  • 227
The Heckscher-Ohlin Theorem in the Multi-Commodity Case
  • 67
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
  • 5,024
  • PDF
Competition and Entrepreneurship
  • 4,921
Comparative Advantage and Heterogeneous Firms
  • 711
  • Highly Influential
  • PDF
Austrian and Neoclassical Economics: Any Gains from Trade?
  • 140
Increasing Returns and the Theory of International Trade
  • 65
  • PDF
...
1
2
3
4
5
...